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anygoal [31]
3 years ago
10

Financial data for a company is provided below:Cash, end of year, $500,000Estimation of yearly cash expenses from negative cash

flows from operations on statement of cash flows, $(155,000)Cash, beginning of year, $400,000Accounts receivable, $10,000Inventory, $20,000Net Income for the yearHow many months will the company be able to continue without positive cash flows or additional financing (round to nearest whole month)?12 months25 months39 months16 months
Business
1 answer:
Firlakuza [10]3 years ago
3 0

Answer:

Answer in this case will be 39 months

Explanation:

In given data estimated negative cash flow from operation is (155,000), this is assumed that there will not be any cash flow from investing or financing activities.

data given for accounts receivable and inventory is irrelevant since both are part of operating cash flow which is already estimated.

there for closing balance at the end of year is $ 500000 divided by negative cash flow of (150,000) equals to months company will able to continue without positive cash flow or additional financing.  

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<span>The question is incomplete, here is the complete question which I previously came across;</span>

When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick, whereby, if she left she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liabilities before she did anything with Treena's hair. Treena, however, sued anyway. The agreement Rick and Janice entered into is referred to as?


The answer is, the agreement Rick and Janice entered into is referred to as "<span>covenant not to compete".</span>

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It is hard to decide if a judge will implement a non-competition agreement. While the privileged insights of a business are important, the law additionally puts value to a person's opportunity to seek after other work. To be enforceable Courts more often than not require that a contract not to compete be sensible. In California, non-competes are adequately unlawful except if you are selling a business. Different states will implement a few provisions, as a rule the trade secret protection, however not the work limitations.

3 0
3 years ago
Suppose a self-regulating economy is in a recessionary gap at the time the Fed enacts expansionary monetary policy. Furthermore,
anzhelika [568]

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The self-regulating economy experiences a recessionary gap. The real GDP is less than the level of natural real GDP. The gap is been corrected by the rightward shift in the short-run aggregate supply curve.

Due to interplay, real GDP will rise to the level above natural real GDP and the recessionary gap turn into an inflationary gap.

Learn more about Monetary policy here:

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8 0
2 years ago
A major reason why it is difficult to lower the barriers to free trade is A. the loss of jobs without any gain of jobs from free
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Answer:

B) the uneven distribution of gains and losses from free trade.

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